“Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade”—A Comment
LeClair [LeClair, M. S. (2002). Fighting the tide: alternative trade organizations in the era of global free trade. World Development, 30(6), 949–958] concludes that in theory Fair Trade is a second-best alternative to aid, may impose losses on non-Fair Trade producers and prolongs dependence on uns...
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| Veröffentlicht in: | World development 2008-12, Vol.36 (12), p.2953-2961 |
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| creator | Hayes, M.G. |
| description | LeClair [LeClair, M. S. (2002). Fighting the tide: alternative trade organizations in the era of global free trade.
World Development,
30(6), 949–958] concludes that in theory Fair Trade is a second-best alternative to aid, may impose losses on non-Fair Trade producers and prolongs dependence on unsustainable modes of production. This paper shows how these conclusions depend upon a particular definition of subsidy and upon the assumptions of full employment and that Fair Trade goods face price-inelastic demand. An adverse impact on non-Fair Trade producers is possible but not intrinsic, and the claim of economic inefficiency cannot be sustained within a more general analysis. |
| doi_str_mv | 10.1016/j.worlddev.2008.01.017 |
| format | Article |
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World Development,
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World Development,
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World Development,
30(6), 949–958] concludes that in theory Fair Trade is a second-best alternative to aid, may impose losses on non-Fair Trade producers and prolongs dependence on unsustainable modes of production. This paper shows how these conclusions depend upon a particular definition of subsidy and upon the assumptions of full employment and that Fair Trade goods face price-inelastic demand. An adverse impact on non-Fair Trade producers is possible but not intrinsic, and the claim of economic inefficiency cannot be sustained within a more general analysis.</abstract><cop>Oxford</cop><pub>Elsevier Ltd</pub><doi>10.1016/j.worlddev.2008.01.017</doi><tpages>9</tpages></addata></record> |
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| ispartof | World development, 2008-12, Vol.36 (12), p.2953-2961 |
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| language | eng |
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| source | RePEc; PAIS Index; Elsevier ScienceDirect Journals |
| subjects | Demand Developing countries Economic efficiency Economic theory Employment Fair Trade Fair Trade developing countries market efficiency under-employment labor supply Free trade Government subsidies labor supply market efficiency Modes of production Pricing Subsidies under-employment Underemployment |
| title | “Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade”—A Comment |
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